My advice: review your portfolio and only keep those with inherent value. some of the criteria I use includes: cash in the bank and ability to raise financing, new discoveries or prospective properties, proven management, current or planned drill programs, beware companies where the insiders are day-traders, it helps if exploration is focused on commodities where demand > supply, the political risk of exploration and development in foreign countries should be a consideration, etc.)
I notice AVL is first on your list - in my opinion, it certainly meets the above criteria and more!
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Monday March 16, 6:45 am Eastern Time
Palladium at fresh highs, platinum firmer
LONDON, March 16 (Reuters) - Palladium surged to fresh 18-year highs on Monday as tightening lease rates marked an increasing scarcity of physical metal, traders said.
The metal extended the bullish tone that prevailed last week to be fixed at a fresh 18-year high of $282.00 an ounce, up on Friday afternoon's $273.00 and the $275.00 previous high hit on Friday morning.
Platinum, though less prone to the Russian supply problems that have dogged palladium, felt a knock-on effect from the tightness in its sister platinum group metal (PGM), putting on several dollars overnight.
Palladium's rise, underpinned by the continued absence of exports from the world's main producer Russia, took off last week when borrowing costs for one-month metal rose above 20 percent.
Rising rates reflected increased demand for physical metal as consumers acknowledged the likelihood of deliveries being put back to April or even May, later than they had anticipated.
Monday's gains came mainly in Tokyo trading hours and early in London as Japanese traders moved yen-based palladium futures by their daily limits of 36 yen per gram amid renewed jitters over supplies.
''News about illness of (Russian President Boris) Yeltsin added to uncertainty over Russian (PGM) supplies and sparked speculative buying,'' one broker there said.
''Investors were forced to cover short positions amid the rally,'' he added.
Yeltsin retreated to a state residence outside Moscow on Friday with an acute respiratory infection, the news breaking during late Tokyo trade.
The Russian leader remained ill on Monday and was due to spend the day at the Gorky-9 state residence outside Moscow, the Kremlin said.
Palladium lease rates climbed to around 30 percent for one month on Monday, up from 25 percent on Friday.
Higher rates make it more expensive, and so less likely, for speculators to hold short positions in the market, which adds a further spur to spot prices.
Palladium was last just under its fresh 18-year highs, trading at $280.00/$283.00 versus $272.00/$274.00 at its New York close at the end of last week.
Platinum was up in tandem at $400.00/$403.00, against $392.90/$394.90 in New York.
Activity was more subdued in gold and silver, with both metals well within their ranges of recent days.
''Gold is very quiet, the range is getting narrower and narrower,'' said one dealer in continental Europe who predicted a $293.75 and $295.50 range.
''At the moment, we have got to take a wait and see attitude. We are getting closer and closer to a break-out,'' he added.
Gold looked set on a similar course earlier in February, approaching a break-out point before lurching lower to $290 and bouncing to $300 only to return to exactly the same pattern as before.
One factor overhanging the market was flagging demand in Asia, where Hong Kong traders were talking last week of gold premiums over London spot prices turning into discounts due to moribund physical demand and increasing recycled supply.
''With no imminent increase in demand likely and supply on the increase, the implication is that premiums could well disappear and discounts emerge in the short term, a rare occurrence in a bear market,'' said Macquarie Equities precious metals analyst Kamal Naqvi in a report.
Gold fixed at $294.15 an ounce in the morning, down on the previous $294.55, as the spot held quiet at $294.15/$294.65 versus New York's Friday close of $295.10/$295.60.
Silver was also quiet at $6.10/$6.14 versus $6.14/$6.16. |
